What is referred to as the performance of two or more firms at the same level?

The term that describes the performance of two or more firms at the same level is competitive parity. This concept signifies a situation where companies are performing similarly in terms of their competitive advantages, market positions, or operational capabilities. When firms achieve competitive parity, it means they are equivalently matched, exhibiting comparable levels of performance and effectiveness in the marketplace. This can result from firms adopting similar strategies, resources, or capabilities that allow them to achieve a level of success that is equally competitive.

Competitive advantage, on the other hand, refers to conditions that allow one firm to outperform its competitors, indicating a difference in performance levels rather than equality. Competitive disadvantage indicates a situation where a firm underperforms relative to its competitors, which is contrary to the essence of parity. Market leadership relates to a firm's dominant position in the market, signifying that it outperforms its rivals significantly. Therefore, competitive parity is the appropriate term used to describe the scenario where firms are positioned equally in competitive performance.